Which of the Following Is an Important Qualitative Factor to Consider

question 40

Multiple Choice

Which of the following is an important qualitative factor to consider regarding a special order?

• A)variable costs associated with the special order
• B)avoidable fixed costs associated with the special order
• C)effect the sale of special-order units will have on the sale of regularly priced units
• D)incremental revenue from the special order

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Definitions:

Income Summary

Income Summary is an account to which all income statement accounts are transferred at the end of an accounting period to calculate the net profit or loss.

General Ledger

The main accounting record of a company that uses double-entry bookkeeping, containing all the financial accounts and statements.

Subsidiary Ledger

A ledger containing detailed information for accounts in the general ledger, such as customers or inventory, facilitating more detailed tracking and management.

Accounts Receivable

Money owed to a company by its customers for goods or services delivered or used but not yet paid for.